If there is a) demand, and b) cheap production the cartels will have power.
If drugs were legal in the US and illegal in Mexico we could EASILY undercut Mexican drug prices and make our own drugs.
We would be a net EXPORTER of drugs to Mexico and they would still have the same problem.
My guess is that in very short order after complete legalization of drugs in the US every country south of Texas would adopt a similar legal stance.** **The main reason they don’t now is because WE don’t want them to and WE fund a good deal of their anti drug forces.
Growing marijuana in CA is essentially legal - some figures suggest it’s 2/3 the economy of Mendocino County.
Even in Mendocino county there are fairly large restrictions on size of the production and there is nothing like what would happen if it was REALLY legal. Show me one “Pot farm” that uses a 200+HP John Deere.
But CA pot will never compete at the low end of the market with Mexican pot because US growers tend to comply with US labor and tax laws.
Most US pot growers are one or two man shows limited by a certain number of plants where “Labor laws” don’t even enter the equation.
Somehow “Tax laws” are a major factor in pot, but almost inconsequential in everything else? I mean 35 to 39.5, no biggy but Tax in the US and no tax in Mexico, can’t compete?
Remember what happened to US sugar production? Same thing with drugs.
Sugar production was completely legal. Meaning we simply were not competitive.
Now I would completely agree that if drugs were legal in Mexico and in the US we’d be buying Mexican drugs, for many reasons. However if drugs were ILLEGAL in Mexico and Legal in the US there’s absolutely no way Mexican drugs could compete.
What you’re saying is that a cartel in Mexico, with only minor agricultural knowledge, an infrastructure burdened by gang violence and fighting authorities could produce a product under those conditions, Illegally ship it to the US, Illegally distribute it at a price cheaper than Monsanto, A farmer with thousands of acres, a distribution company and Walgreens could? No way, period.
I’ll add that the RAND corp estimated that less than 1/3 of cartel profits come from exporting drugs to the U.S. They are diversified global businesses, not simply drug runners.
And the estimation is that 60% of their profits come from pot. And you’re saying they can grow the stuff in hidden fields and buildings, distribute it to the US, again illegally, cheaper than we can basically grow corn. I mean honestly, who would even buy pot from a dealer on the street if you could pick it up from Walgreens, even if it WAS cheaper?
I think you’re way off base on this one.
~Matt